1. Develop Revenue, Cost, and Profit
Revenue (R) = Sales * Selling Price = 25,000 units * 100 Br = 2,500,000 Br
Total Cost (C) = Total Variable Cost (TVC) + Total Fixed Cost (TFC) = 1,500,000 Br + 350,000 Br = 1,850,000 Br
Profit (P) = Revenue - Total Cost = 2,500,000 Br - 1,850,000 Br = 650,000 Br
2. Find the Break-Even Point (BEP)
Break-Even Point (in units) = TFC / (Selling Price - (TVC / Sales)) = 350,000 Br / (100 Br - (1,500,000 Br / 25,000 units))
BEP (in units) = 350,000 Br / (100 Br - 60 Br) = 350,000 Br / 40 Br = 8,750 units
3. Convert the Cost Equation
Cost Equation: C = TFC + TVC * Q
Where Q represents the number of units sold.
C = 350,000 Br + (1,500,000 Br / 25,000 units) * Q
C = 350,000 Br + 60 Br * Q
4. Find the Break-Even Revenue
Break-Even Revenue = Break-Even Point (in units) * Selling Price = 8,750 units * 100 Br = 875,000 Br
5. If Profit had been 500,000 Br, what would be the Sale Volume (Revenue) and Quantity?
New Profit = 500,000 Br
New Revenue = New Profit + Total Cost = 500,000 Br + 1,850,000 Br = 2,350,000 Br
New Quantity = New Revenue / Selling Price = 2,350,000 Br / 100 Br = 23,500 units
6. Profit if Sales are 2,000,000 Br
New Revenue = 2,000,000 Br
New Profit = New Revenue - Total Cost = 2,000,000 Br - 1,850,000 Br = 150,000 Br
In it's frist year, "Abol Buna Co"had the following experience
A,sales =25000 units
B, selling price=br.100
C,TVC=br.1500000
D, TFC=br.350000
Then
1, develop R,C,& Profit
2,,find the BEP
3,convert the cost equaction
4,find the BE revenue
5,if Profit had been br.500000 what wuold be sale volume (revenue)& quantity
6, Profit been if sales are br.2000000
1 answer